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Pakistan witnessed a slowdown in consumer price inflation in April, dropping to 17.3% from the previous year, as per data released by the statistics office on Thursday. This marks the lowest inflation rate in nearly two years, surpassing the projections set by the finance ministry.
The country has been grappling with inflation rates exceeding 20% since May 2022. In May 2023, inflation peaked at 38% amidst the implementation of reforms under an International Monetary Fund bailout program.
Month-on-month, there was a decrease of 0.4% in inflation, marking the first instance of negative inflation since June 2023.
According to the finance ministry’s monthly economic report, it anticipated inflation to range between 18.5% and 19.5% in April, with a further decline expected in May to 17.5%-18.5%. The report attributes this decline to a favorable base effect from the previous year and enhancements in the domestic supply chain for essential goods.
The Finance Division underscores its commitment to curbing inflation through stringent administrative measures. It forecasts inflation to remain within the range of 18.5%-19.5% in April 2024, with expectations for a gradual decrease to 17.5%-18.5% in May 2024.